Last Updated on October 21, 2025 by Maryam Siddiqui
Portugal’s economy is on the rise! With growing numbers of foreign investors and expats moving in, now is the perfect moment to launch a business here. Even after the pandemic, the country’s startup scene continues to flourish. But which cities in Portugal are the best for starting a business?
Although each case is different, some factors give other cities a competitive edge. There are a few popular cities that everyone knows are great for tourism-related activities, but Portugal offers a lot more than that.
If you’re an investor, an entrepreneur, or a business person looking to expand your business globally, keep reading. This step might just be what you need to grow your business tenfold. Happy reading!
What are the best cities to start a business in Portugal?
For some time now, Portugal has been offering excellent business opportunities. This small Southern European nation, once overlooked, is now attracting investors from across the globe. Still, a few cities shine as key hubs for innovation, startups, and prospects.
Of course, each company is a different case, and it’s impossible to say which are the definitive best cities to start a business in Portugal. However, through statistics and patterns, there are a few that indicate greater success in some regions.
Let’s face it, while there is no single city that is termed as best as far as business is concerned, here is a breakdown of the best performers. Some of the metrics used to narrow down this list include population, how popular the city is, and general economic activity, such as growth potential, infrastructure development, availability of skilled labor, and ease of doing business.
By weighing these factors, it becomes easier to highlight the cities that stand out as business hubs.
According to what is shown in the Portugal City Brand Ranking 2022, held annually by Bloom Consulting, the best cities to start a business in Portugal can be:
1. Lisbon
The largest city in Portugal, Lisbon, truly has it all. It’s the capital and the country’s business, tourist, and cultural center. It is located on the central coast of Portugal and is bathed by the Tagus River. Lisbon has seen great advances in recent years despite being one of the oldest cities in Europe.
Living in Lisbon, you get access to all types of businesses. This European capital has high standards, and you’ll find any business here. Micro, medium, and macro.
Most of the best places to work are in Lisbon, which is also the best place to start a new business. Of course, being so good, Lisbon has the highest costs in the country. Get to know some facts about Lisbon:
| Lisbon Info | Data |
|---|---|
| Population | 2,275,385 |
| Average Monthly Net Salary (After Tax) | €1,218 |
| Property price | €5,829 / m² |
Salary estimates are from Numbeo (as of August 2025).
Population data from City Population (as of August 2025)
Property price estimates are from Idealista (as of August 2025).
2. Porto
Porto plays a vital role in both Portugal’s industry and cultural identity. While the capital, Lisbon, is a globalized metropolis, Porto retains much of what is traditionally considered Portuguese.
As the main city of the northern region, it is cooler, rainier, and home to a hardworking population.
| Porto Info | Data |
|---|---|
| Population | 1,785,405 |
| Average Monthly Net Salary (After Tax) | €1,133.14 |
| Property price | €5,829 / m² |
Salary estimates are from Numbeo (as of August 2025).
Population data from City Population (as of August 2025)
Property price estimates are from Idealista (as of August 2025).
Other than that, Porto has been standing out for businesspeople lately because, unlike Lisbon, it offers more reasonable prices and even greater prospects for appreciation.
Living in Porto is considered cool, and many artists, hipsters, and investors find a home here. In addition, the tourism here is also strong most of the year, and the expatriate population grows more every day.
3. Cascais
Cascais, located only 30 km from Lisbon’s center, is one of the most expensive cities to live in and also one of the most prestigious in Portugal. Once a humble fishing village, it has transformed into what is now known as the Portuguese Riviera.
Here, the rich and famous stroll along the seashore, many entrepreneurs work in the town of Lisbon, and there’s no lack of infrastructure for all social classes. It’s in the tourist area but not the center of attention. Even so, Cascais has a considerable population and tends to grow, especially due to foreign residents.
| Cascais Info | Data |
|---|---|
| Population | 214,158 |
| Average Monthly Net Salary (After Tax) | €2,100 |
| Property price | €5,327 / m² |
Salary estimates are from Numbeo (as of August 2025).
Property price estimates are from Idealista (as of August 2025)
4. Braga
Braga is one of the most important cities in northern Portugal. It has suddenly been filled with expatriates in recent years and promises to be a favorable environment for companies of all sizes and areas.
Although the city attracts some religious tourism, its residents are primarily engaged in services and industrial production. It may not be as large or bustling as Porto or Lisbon, but it’s an ideal choice for those seeking a calmer lifestyle.
| Braga Info | Data |
|---|---|
| Population | 193,349 |
| Average Monthly Net Salary (After Tax) | €1,022 |
| Property price | €1,793 / m² |
Salary estimates are from Numbeo (as of August 2025).
Property price estimates are from Idealista (as of August 2025)
5. Coimbra
Located in central Portugal, Coimbra is one of the most important Portuguese cities. The city is one of the cradles of Portuguese culture and home to one of the oldest universities in Portugal and Europe. The residents of Coimbra aim for a bright future with booming businesses.
The local government launched many entrepreneurship initiatives, and the city also attracts many scientific researchers due to the university’s academic fame.
Coimbra is a great option to explore if you’re looking to invest in a quieter city that still offers full infrastructure and sits near the Silver Coast.
| Coimbra Info | Data |
|---|---|
| Population | 140,838 |
| Average Monthly Net Salary (After Tax) | €1,161 |
| Property price | €1,473 / m² |
Salary estimates are from Numbeo (as of August 2025).
Property price estimates are from Idealista (as of August 2025)
6. Vila Nova de Gaia
The younger sister of the great city of Porto, Vila Nova de Gaia, is growing to become much more than just that. The city is on the south bank of the Douro river, opposite Porto, but shares many qualities with the northern capital.
Traveling between the two is simple, and Vila Nova de Gaia offers lower costs while maintaining strong potential. The region also hosts numerous thriving industries and has one of the country’s largest populations, making it an excellent place to launch a new business.
| Vila Nova de Gaia Info | Data |
|---|---|
| Population | 303,854 |
| Average Monthly Net Salary (After Tax) | €1,433 |
| Property price | €2,720 / m² |
Salary estimates are from Numbeo (as of August 2025).
Property price estimates are from Idealista (as of August 2025)
7. Sintra
Known for its beauty and fame, Sintra stands out as one of Portugal’s top tourist destinations. Its medieval attractions and celebrity residences make the village and surrounding areas an ideal place to establish a business.
Mainly those dedicated to tourism, such as restaurants, hotels, and so on. Furthermore, Sintra is only 30 km from Lisbon and 15 km from Cascais. In other words, on the route to success.
| Sintra Info | Data |
|---|---|
| Population | 385,654 |
| Average Monthly Net Salary (After Tax) | €1,200 |
| Property price | €3,004 / m² |
Salary estimates are from Numbeo (as of August 2025).
Property price estimates are from Idealista (as of August 2025)
- If you’re considering starting a business, you’d enjoy reading the article 3 Types Of Investments In Portugal You Should Consider Making.
8. Funchal
The imposing capital city of the island and archipelago of Madeira, Funchal is one of the best cities to start a business in Portugal. In addition to companies on Portuguese islands benefiting from lower taxes, they are fortunate to have a unique European environment.
Funchal is not only a city where businesses can thrive but also where real estate investors secure a Golden Visa. It’s a destination to definitely consider.
| Funchal Info | Data |
|---|---|
| Population | 105,795 |
| Average Monthly Net Salary (After Tax) | €925 |
| Property price | €3,679 / m² |
Salary estimates are from Numbeo (as of August 2025).
Property price estimates are from Idealista (as of August 2025)
9. Setúbal
In recent years, Setúbal has seen a sharp increase in the purchase of old buildings for urban regeneration. This trend is fueled both by foreign investment and by the city’s appealing living conditions and climate, which make it an inviting place to settle.
Setúbal is home to many business centers, manufacturers, wholesalers, and retailers. Tourism is also a huge market for the city, and so many businesses are related to the tourism and dining sectors.
| Setúbal Info | Data |
|---|---|
| Population | 123,519 |
| Average wage | €938 |
| Property price | €2,173 / m² |
Salary estimates are from Numbeo (as of August 2025).
Property price estimates are from Idealista (as of August 2025)
10. Aveiro
While many may not view Aveiro as a leading business destination in Portugal, its potential is undeniable. This medium-sized city, nicknamed the “Venice of Portugal,” is celebrated for its scenic charm.
The residents include many international students here for university and also numerous retirees, as the city is quiet with exciting nightlife. Here, you could open a bar with some great food and be ready to serve dozens of customers every day!
| Aveiro Info | Data |
|---|---|
| Population | 80,978 |
| Average wage | €1,045.83 |
| Property price | €1,915 / m² |
Salary estimates are from Numbeo (as of August 2025).
Property price estimates are from Idealista (as of August 2025)
What are the sectors of the economy in Portugal with the most employees?
According to official data published in Pordata, Portugal has more workers in the following sectors:
- Wholesale and retail trade;
- Manufacturing industries;
- Administrative and support services activities;
- Accommodation, restaurants, and similar;
- Construction;
- Consulting, scientific, technical, and similar activities;
- Agriculture, animal production, hunting, forestry, and fishing;
- Human health and social support activities;
- Transport and storage;
- Information and communication activity.
Why are expats investing in new businesses in Portugal?
While in other European countries, foreigners investing in companies can be very complicated, Portugal welcomes expatriates with open arms.
There are tax benefits for new residents, a safe environment with an excellent quality of life, and great prospects for the economy’s future.
Profit generation is at the core of every investment, and Portugal provides the right conditions for it. Despite the pandemic, the economy has remained strong, tourism keeps expanding, and many visitors decide to relocate for good.
With such potential and an eager market, it’s no surprise that investors are drawn in.
How to get a business visa to Portugal?
Foreigners who want to live in Portugal while starting a new business must apply for a D2 visa. This visa, also known as an entrepreneur or business visa, is intended for non-EU citizens with the potential and motivation to make a new company successful in Portuguese lands.
It allows you and your family to live in Portugal and move freely through the Schengen countries. With it, you get a Residence Permit valid for a period of 2 years, with the right to renewal.
Like other visa processes in Portugal, obtaining the D2 Visa requires meeting the Portuguese consulate’s requirements, submitting an application, and undergoing evaluation. Once approved, the visa allows you to travel to Portugal and apply for a residence permit.
Some suggested activities for obtaining the D2 Visa are:
- Submit a business plan to the consulate
- Create a personal tax number (NIF) and open a bank account in Portugal.
- Create the company in Portugal, the company’s tax number (NIPC), Social Security number (NISS), and corporate bank account.
- Register the company’s trademark.
You can access more info about this in our article All About Starting a Business in Portugal and Obtaining a D2 Visa.
When are you starting your business in Portugal?
Given the present market trends, there’s no better moment to launch your business here than now. Simply pick your preferred option from this list of top cities in Portugal to start a business, and take the first step toward expanding your vision and achieving remarkable growth.
If you want to hear from other investors who were in your place, join our Facebook Group – All About Portugal For Expats. It’s a community of over 15,000 Portugal enthusiasts waiting to help you achieve your goals. Ask questions, clear your doubts, and start executing your new business plan.
Our professionals at Viv Europe are also here to guide entrepreneurs who want to start a business here. Make your visa application process smoother, and find the appropriate property for your business now!
